SIP accounts cross 10 crore as equity MF inflows rise 19% in August

Despite volatile stock markets and a strong IPO pipeline, equity-oriented mutual fund schemes received net inflows of Rs 29,328 crore in August, an increase of nearly 19% over the Rs 24,697 crore received in July, according to the latest data from the Association of Mutual Funds in India (AMFI).

The August inflows mark the 66th consecutive month of positive equity mutual fund flows, with the uninterrupted streak beginning in March 2021. The rebound comes after equity inflows fell about 15% month-on-month in July from Rs 28,973 crore in June.

The latest numbers point to continued investor participation even as the pace of equity inflows had moderated in recent months. July’s decline came alongside a shift towards lower-risk products, while small-cap and mid-cap schemes continued to attract money.

Retail participation also remained strong. Mutual fund folios increased to 28.35 crore in August, with 26.54 lakh net folios added during the month. This was up from around 28.09 crore folios in July. Retail mutual fund AUM — covering equity, hybrid and solution-oriented schemes — stood at Rs 51.72 lakh crore in August, compared with Rs 50.68 lakh crore in July.

Retail folios in these categories rose to 21.62 crore from 21.40 crore during the same period. A key driver of the industry's continued growth was systematic investment plans (SIPs). SIP assets rose 2.8% to Rs 18.61 lakh crore in August, accounting for about 21.4% of the industry's AUM.

SIP contributions during the month stood at Rs 32,297 crore. The number of contributing SIP accounts crossed the 10-crore mark, reaching 10.01 crore in August. The milestone shows the growing role of systematic investing and household participation in financial markets.

“The Indian MF industry's AUM grew 1.5% on-month to Rs 87.08 lakh crore in August, driven by a combination of sustained investor inflows and market appreciation,” said Venkat Chalasani, Chief Executive Officer (CEO) of AMFI.

Chalasani said equity mutual funds recorded inflows of Rs 29,329 crore, marking the 66th consecutive month of inflows, while SIP contributions remained robust at Rs 32,297 crore. He said the crossing of the 10.02-crore SIP-account milestone reflected growing investor interest.

“The quality of August's equity inflows is as important as the quantum. Every major active equity category posted positive inflows, a clean sweep that has not been consistent across prior months,” said Nitin Agrawal, CEO, Mutual Funds, InCred Money.

“Small-cap at Rs 7,973 crore posted its second consecutive month above Rs 7,500 crore. The sustained accumulation at this level is notable. The category now has AUM of Rs 4.65 lakh crore, and investors adding at current levels need to remain anchored to long-term time horizons,” he said.

Mid-cap at Rs 6,989 crore is the strongest monthly reading in the current cycle. The combination of sustained inflows and growing AUM confirms mid-cap's evolution from a satellite to a core allocation in the Indian retail equity portfolio.

Flexi-cap recovered to Rs 5,059 crore from July's Rs 4,709 crore, with AUM now at Rs 6.11 lakh crore. The category continues to hold its position as the largest equity category by AUM. Debt schemes recorded a net outflow of Rs 8,127 crore in August, a sharp reversal from July's Rs 1,87,511 crore inflow.

The mechanics are identical to prior months. Overnight funds saw outflows as institutional cash cycled out, while liquid funds swung to a modest positive of Rs 19,934 crore. The institutional cash management categories dominate and distort the headline.

According to Kartik Jain, Managing Director (MD) and CEO, Shriram AMC, what is particularly interesting is the growing role of gold within investor portfolios. Gold ETFs saw net inflows of Rs 2,597 crore in August 2026, compared with Rs 2,190 crore in August 2025, a rise of 18.58%.

More significantly, Gold ETF AUM has risen from around Rs 72,496 crore a year ago to over Rs 1.91 lakh crore now, marking a sharp increase of roughly 163%. This reflects both stronger investor participation and the impact of gold's performance over the period.

George Mathew is an Associate Editor with The Indian Express, based in Mumbai. A veteran of financial journalism with nearly three decades of experience, he is one of the country’s most authoritative voices on banking, regulation, and the corporate sector.

Expertise & Focus Areas Mathew’s reporting covers the nerve center of India’s economy. His specialized beats include: The Reserve Bank of India (RBI): He has tracked the central bank's policy evolution through the tenures of multiple Governors, offering deep insights into monetary policy, repo rates, and banking regulation.

Banking & Insurance: Extensive coverage of public and private sector banks, non-performing assets (NPAs), and key legislative reforms like the Insurance Amendment Bills. Corporate Affairs: Mathew frequently breaks major stories related to India's largest conglomerates, with a specific focus on the Tata Group, documenting boardroom shifts and strategic decisions.

Financial Markets: Reporting on the complexities of Foreign Portfolio Investors (FPIs), IPOs, and currency fluctuations. Authoritativeness & Insight With a career dating back to the late 1990s, Mathew possesses a rare institutional memory of India’s financial liberalization and market crises.

His work is not limited to daily news; he frequently contributes to the "Explained" section, where he decodes complex financial legislations and market trends for a broader audience. His rigorous reporting has also been featured in scholarly platforms like the Economic and Political Weekly (EPW).

Find all stories by George Mathew here ... Read More